Global wheat hits a two-year high as Black Sea and Strait of Hormuz tensions threaten supply

Chicago wheat futures reached around 6.7 to 6.8 dollars a bushel in recent weeks, the highest level since May 2024 and effectively a two-year high. The main driver is intensifying attacks in the Black Sea region, which threatens one of the world's key grain export corridors.

According to reports, the export price of new-crop Russian wheat (with 12.5 percent protein) for August delivery rose about 7 dollars to near 235 dollars a tonne. Disruption in the Strait of Hormuz has also put flows of fertilizer and other farm inputs at risk.

This matters directly for Iran, one of the world's large importers of wheat and agricultural inputs, from the standpoint of food security and the import bill.